Share Prices & Company Research

Market News

22 Feb 2021 | 07:46

Saga said to be in talks over £170m debt package

(Sharecast News) - Saga, which specialises in products for the over-50s, is reportedly in talks about a £170m debt package as it looks to weather the coronavirus pandemic. According to Sky News, the company - which last year rejected a takeover offer- has begun talks with a group of debt funds about refinancing part of its existing borrowings. Sky cited City sources as saying that Saga was considering trying to secure the new debt against its insurance arm, which is the stronger of its two businesses.

The talks with existing prospective lenders are some way from being concluded, according to insiders, and may not result in a deal, Sky said.

In a trading update at the end of last month, Saga said: "Whilst the group has significant liquidity and headroom to the current covenants in short term bank facilities, given the backdrop of continued disruption to the travel business, we are taking actions to further enhance financial flexibility.

"We have commenced constructive discussions with lenders, who remain supportive. We are reviewing the covenants attached to our term loan and revolving credit facility, to increase flexibility ahead of the resumption of travel. As part of a package of measures available for the cruise industry, separate discussions are underway in relation to a further debt deferral and covenant waiver for the two ship facilities."

At 0810 GMT, the shares were down 3.8% at 287.34p.

Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 30th April 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.